Chapter 1. Organizational Structues
Chapter 1. Organizational Structues
Pyramid organization
A pyramid organizational structure functions following the shape it's named for, with one
leader at the top, a small executive leadership team below, and (1) _______ leading down
tiers of managers
to the bottom team of employees. Each tier of managers manages the tier below, which
distributes the responsibility more evenly. It's designed to ensure each employee is better
served by a manager above, who can provide personal attention to his small team.
Also called the hierarchical organizational structure, the pyramid organizational structure
assumes that information will be passed down the line. So if a CEO meets with the small
leadership team beneath him, those leaders will meet with the small tier of leaders beneath
them, passing the information on, and it will then be shared with the next tier.
This pyramid-like type of organizational structure is often used when many (2) ______
layers of oversight
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are needed to ensure compliance and tiered approval of decisions. Decision-making is
much slower and takes time to process up or down the (3)chain
_______. Companies with a
of command
high number of employees will typically adapt a hierarchical structure to better
accommodate their size and clarify reporting relationships.
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Flat organizational structure
In recent years, as businesses strive for a more casual, laid-back work culture, flat
structures have become extremely popular, especially among small startups. A flat
limited management levels
organizational structure is one with (4) _______ between the top business leadership and
the ground-level employees. This structure encourages an (5) ______ where every
employee feels as though she’s in direct content with the leadership team, which makes
her feel more invested in the business as a whole. open office environment
This type of structure is very common, particularly in large corporations. Some large
companies with a functional organizational structure include: Starbucks, Amazon, and
Apple.
Benefits: High level of expertise in specific areas by grouping employees based on their
function; Clear reporting lines.
Limitations: Slow response times due to centralized decision-making; Limited view of
organizational goals due to departments being focused on their own objectives.